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Scientex's Property Segment Bears Fruit As Packaging Slows

Business Today ·  Sep 25 05:05

The higher turnover forecasts of Scientex Berhad (Scientex) into 2025/2026 are driven mainly by its property segment through steady construction progress and robust demand for new affordable project launches.

Analysts believe the 2025 and 2026 turnovers for the company to reach RM4917.7m and RM5325.9, respectively.

Its two new property launches in Jenjarom and Cheras saw strong demand. Shop offices in Jenjarom, launched in April 2024, were fully taken up while two of its residential projects in the same area, launched in May and June, achieved exceptional take-up rates of 95% and 70%, respectively. Its shop offices in Cheras achieved an 85% take-up rate, with a residential launch planned for 2025.

However, slow demand recovery in the packaging division, especially consumer packaging, has led to low utilisation rate, currently around 55%.

Kenanga lifted Scientex's target price (TP) by 4% to RM4.15 (from RM4.00). The new TP commensurates with a MARKET PERFORM rating from the UNDERPERFORM rating previously.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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